MANAGEMENT AUDIT OF HR POLICIES IN BANKS: A DESCRIPTIVE STUDY
Keywords:
Management Audit, Human Resource Policies, Banking Industry, PerformanceAbstract
Purpose: Management Audit is a critical area of audit where policies rather than financials are evaluated. This study therefore evaluates the current state of management audit with respect to human resource policies and their impact on the performance of banks in Pakistan. The purpose of this research is to make necessary modification in policies, securing human resources and allowing better performance in terms of higher profitability and reduced risks.
Method: A detailed study has been made for four major categories of banks (Government Owned, Private, Foreign and Islamic) in Pakistan. Six Banks (NBP, MCB, UBL, HBL, SCBL and MBL) are selected through stratified random sampling and data from the bank officials has been obtained through self-administered structured close-ended questionnaires. Related head office departments of banks and other sources are approached through direct/unstructured interviews from executives of these departments. All the data collected through questionnaires has been analyzed using statistical software SPSS and Microsoft excel whereas qualitative analysis are made on the data collected through interviews.
Findings: The study is based on a descriptive analysis and discovered the significant relationship in between management audit, effectiveness of HRM and the performance of banks with respect to HRM policies.
Practical Implications: This study is helpful to bring about policy initiatives that if implemented correctly may produce strong positive impact on the banking industry of Pakistan.
Novelty/Originality: This study is one of its kinds that has been conducted on management audit in the banks of Pakistan.